Texas-based S2 Capital has its eye on owning 5,000 apartments in Metro Orlando after making its entry by purchasing more than 1,600 apartments east of the Millenia area for a total of $124.5 million.
The sale includes Grandview Pointe on Americana Boulevard and Lake View Pointe on Rio Grande Avenue west of South Orange Blossom Trail and Lake Jasmine on Redman Street east of South Orange Blossom Trail.
S2 aims to more than triple that presence in Metro Orlando during the next 18 months, its founder and managing partner Scott Everett told GrowthSpotter on Tuesday.
"Orlando has one of the most diverse, high-growth markets in the country," Everett said. "Employment opportunities and population are continuously growing and there is a controlled supply pipeline of new product that creates a very favorable environment for Class B workforce housing."
S2 plans approximately $21 million in renovations to the properties. Most of the buildings were constructed from 1972 to 1974. The sellers, affiliates of NR Investments, purchased the properties in 2011 and 2012.
Lake View Pointe has 558 units on 44.3 acres, some of which border Lake Buchannan. Lake Jasmine has 336 units on 21.8 acres, a handful of which border Lake Bumby. Grandview Pointe has 768 units, nearly 600 of them north of Americana, on about 31 acres in all.
A mortgage in the amount of $122,555,000 was recorded with lender Benefit Street Partners Realty Operaing Partnership LP.
S2 targets its investments on underperforming or distressed multifamily properties of 175 units or more in Texas and Florida, according to its website. It owns nearly 20,000 units with the acquisition of the Orlando properties, the website said, and has made $170 million in renovations at its properties through affiliate S2 Construction.
Millenia and nearby areas in south Orlando have seen significant activity in recent months. That includes: